Will you need to spend down for Medicaid?

Medicaid is an insurance program that helps Delaware residents pay for health care when they are unable to afford a health care insurance program on their own. As part of the estate planning process, you may want to consider a Medicaid spend-down strategy to ensure that you meet the requirements to be eligible for this type of insurance.

What are the requirements?

One of the biggest requirements for qualifying for Medicaid is having an income level that is equal to or below a set amount. The specific set amount will vary depending on the state that you live in. In addition, you’ll need to have below a certain value of countable assets to be eligible.

Medicaid representatives will evaluate your various assets based on their examination of what they consider countable and non-countable assets. Countable assets include cash, bank accounts, investment accounts, retirement accounts and investment properties. Some examples of non-countable assets include a vehicle, prepaid funeral expenses, a primary residence, term life insurance and home furnishings.

What are some potential spend-down strategies to employ?

If you find that your countable assets are above the maximum limits set by your state, you can opt to employ a spend-down strategy. The easiest strategy to employ is to use available funds to pay down some of your existing debt. Think about your mortgage, auto loan or credit cards. There are also various estate planning strategies that you can use, like a Medicaid asset protection trust.

Medicaid is a valuable health insurance program that most people want to qualify for. Unfortunately, having too many assets can make this difficult. You can utilize various strategies to help decrease your assets and qualify for Medicaid.